Alpha Pro Tech, Ltd. Announces Third Quarter 2024 Financial Results

Core Viewpoint - Alpha Pro Tech, Ltd. reported a decrease in overall sales for the third quarter of 2024, primarily driven by challenges in the Building Supply segment, while the Disposable Protective Apparel segment showed growth. Financial Performance - Net sales for Q3 2024 were $14.3 million, down 11.2% from $16.1 million in Q3 2023 [1][4] - Net income for Q3 2024 was $862,000, or $0.08 per diluted share, compared to $1.4 million, or $0.12 per diluted share, in Q3 2023 [1][24] - For the nine months ended September 30, 2024, net sales decreased to $44.0 million from $46.0 million, a decline of 4.2% [10] Segment Performance Building Supply Segment - Sales decreased by 23.2% to $8.8 million in Q3 2024, down from $11.4 million in Q3 2023 [1][5] - The decline was attributed to a 16.2% drop in housewrap sales, a 25.1% decrease in synthetic roof underlayment, and a 27.2% decrease in other woven materials [5][11] - For the nine months ended September 30, 2024, sales decreased by 11.9% to $27.0 million compared to $30.6 million in the same period of 2023 [11] Disposable Protective Apparel Segment - Sales increased by 18.4% to $5.5 million in Q3 2024, compared to $4.6 million in Q3 2023 [1][8] - The growth was driven by a 6.9% increase in disposable protective garments, a 124.3% increase in face masks, and a 204.5% increase in face shields [8][13] - For the nine months ended September 30, 2024, sales increased by 11.0% to $17.0 million compared to $15.4 million in the same period of 2023 [13] Operational Insights - Gross profit for Q3 2024 decreased by $551,000, or 9.1%, to $5.5 million, with a gross profit margin of 38.5% [16] - Selling, general and administrative expenses increased by 2.6% to $4.5 million for Q3 2024, representing 31.6% of net sales [19] - Income from operations decreased by 48.2% to $737,000 for Q3 2024, compared to $1.4 million in Q3 2023 [21] Balance Sheet Highlights - As of September 30, 2024, cash and cash equivalents were $18.4 million, with working capital of $48.7 million and no debt [1][26] - Inventory increased by 4.7% to $21.1 million, driven by a 33.6% increase in the Building Supply segment [27] Market Context - The U.S. housing market faced challenges, with housing starts down 4.0% in Q3 2024 compared to the prior year [2] - Multi-family housing starts for the first nine months of 2024 were down 30.5%, marking the lowest level in ten years [2]